diff --git a/src/cli/serve/serve.js b/src/cli/serve/serve.js
index 760c0deceb0f..0af3b370a8a6 100644
--- a/src/cli/serve/serve.js
+++ b/src/cli/serve/serve.js
@@ -71,11 +71,7 @@ module.exports = function (program) {
     let set = _.partial(_.set, settings);
     let get = _.partial(_.get, settings);
 
-    if (opts.dev) {
-      set('env', 'development');
-      set('optimize.watch', true);
-    }
-
+    if (opts.dev) set('env', 'development');
     if (opts.elasticsearch) set('elasticsearch.url', opts.elasticsearch);
     if (opts.port) set('server.port', opts.port);
     if (opts.host) set('server.host', opts.host);
diff --git a/src/server/config/schema.js b/src/server/config/schema.js
index 68edc496b139..0b373398185e 100644
--- a/src/server/config/schema.js
+++ b/src/server/config/schema.js
@@ -85,8 +85,7 @@ module.exports = Joi.object({
     }),
     bundleDir: Joi.string().default(fromRoot('optimize/bundles')),
     viewCaching: Joi.boolean().default(Joi.ref('$prod')),
-    watch: Joi.boolean().default(false),
-    lazy: Joi.boolean().when('watch', {
+    lazy: Joi.boolean().when('$dev', {
       is: true,
       then: Joi.default(true),
       otherwise: Joi.default(false)